Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. constant.
b. falling.
c. rising.
d. none of these.
QUESTION 2Since the Great Depression, business fluctuations have become more severe and longer in duration.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Marginal revenue product is defined as the extra:
a. output a firm would receive after hiring one more unit of resource.
b. cost of hiring one more unit of resource
c. revenue earned by selling one more unit of product.
d. revenue earned by hiring one more unit of resource
e. output received by spending one more dollar on resources
QUESTION 4Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. constant.
b. falling.
c. rising.
d. subject to diminishing returns.
QUESTION 5The failure of the mercantilism policy and the tax policy during the Great Depression proves that economic policies are meaningless and they do more harm than good.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Assume consumer demand for CD-ROMs increases. The result is a(n):
a. increase in derived demand for workers in the CD-ROM industry.
b. increase in the marginal revenue product of firms in the CD-ROM industry.
c. rightward shift in the market demand for labor curve in the CD-ROM industry.
d. all of these.
e. none of these.
QUESTION 7In the long run, a firm might experience rising per-unit cost due to:
a. economies of scale.
b. diseconomies of scale.
c. the law of supply.
d. the law of diminishing marginal returns.
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